JHB 011 672 0020 | CPT 021 410 8709 info@mmsgroup.co.za
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COVID-19 SMME EMERGENCY FUNDING
  1. BUSINESS GROWTH/ RESILIENCE FACILITY
  • This facility will fund the following:
  • Production/supply of health care and related products that will be utilised to combat the spread of COVID-19 pandemic.
  • Local production/manufacturing/supply of various products that will be required by the country emanating from a shortage due to COVID-19 pandemic.
  • Rationale for the facility
  • The funding will give local manufacturers and suppliers and opportunity to produce and strengthen their place in the market, which may lead to long-term contracts post COVID-19 pandemic.
  1. SMME RELIEF FINANCE
  • This facility will fund the following:
  • Soft loan funding that will keep the existing businesses a float during the COVID-19 pandemic for 6 months from April 2020.
  • Rationale for the facility
  • The majority of SMME’s will experience severe reduction in demand and subsequent reduction in revenues due to the COVID-19 pandemic. As a result, it is important to ensure that SMME’s do not close down completely and that they are supported with working capital to ensure that jobs are retained in the economy.
  1. RESTRUCTURING OF FUNDED SMME’s
  • The following interventions will be provided to SEFA funded SMME’s that are negatively affected by the COVID-19 pandemic:
  • A payment moratorium/holiday will be given for a period of maximum of 6 months to reduce the instalment burden of loan obligations on clients during the COVID-19 pandemic.
  • The interest accrued will not be capitalised into the loan facility over the proposed 6-month maximum period.
  • Funded SMME’s must submit proof of the negative impact of COVID-19 pandemic.
  • This will be implemented using the SEFA Post Investment team and signed off by the Executive – Post Investment.
  • Debt restructuring – An analysis of SEFA funded SMME’s will be conducted to assess which clients require restructuring of the loan accounts.
  • Additional funding will be offered at prime less 5%.
  1. INDUSTRIAL DEVELOPMENT CORPORATION (IDC)
  • Limit the spread and immediate impact of the virus
  • Financial support to be provided by the IDC includes:
  • Support for the manufacturing of essential medical products.
  • R500 million for trade finance to import essential medical products
  • Working capital support
  • R700 million funding provided.
  • Funds to be shared between IDC, Small Enterprise Agency (SEFA) and National Empowerment Fund (NEF)
  • Earmarked to assist suppliers of identified critical goods that are affected by the COVID-19 pandemic.
  • For more information refer to this page
  1. NATIONAL EMPOWERMENT FUND (NEF)
  • NEF is managing R200 million of COVID-19 Intervention Fund on behalf od the Department of Trade, Industry and Competition.
  • The fund has been set-up to assist manufacturers in the production of health care and related products to combat the spread of COVID-19 pandemic.
  • Funds will be to black empowered businesses.
  • The funds can be utilised for the following:
  • Working capital requirements, and/or
  • Acquisition of equipment
  • The minimum loan will be R500,000 and the maximum is R10,000,000.
  • The terms of the loan will be:
  • 60 months repayment term,
  • 12 months payment holiday (with 0% interest during this time),
  • Repayment over the remaining period at a fixed interest rate of 2.5%
  1. TOURISM RELIEF FUND
  • Once-off capped grant assistance to Small Micro and Medium Sized Enterprises (SMMEs) in the tourism sector to mitigate the impact of COVID-19 in order to ensure their sustainability.
  • Capped at R50 000 per entity, grant funding can be utilised to subsidise expenses towards fixed costs, operational costs, supplies and other pressure cost items.
  • The applications will be processed weekly, subject to availability of funds, while observing equitable spatial distribution in terms of provinces.
  • Categories eligible to apply for the Tourism Relief Fund include the following:
  • Accommodation establishments: Hotels, Lodges, Bed and Breakfast (B&B’s), Guest Houses and Backpackers.
  • Hospitality and related services: Restaurants (not attached to hotels); Conference venues (not attached to hotels); Professional catering; and Attractions.
  • Travel and related services: Tour operators; Travel agents; Tourist guiding; Car rental companies; and Coach Operators.
  • Non-qualifying activities
  • Fast food and take away restaurants, nightclubs, bars, gaming and gambling venues.
  • Franchised restaurants and those attached to tourism facilities.
  • Establishments wholly or partially owned by Government will not be considered.
  • Qualifying criteria
  • Proof of valid registration with Companies and Intellectual Property Commission (CIPC).
  • Must be an Exempted Micro Enterprise (EME) defined in terms of the Amended Tourism B-BBEE Sector Code, 2015 – Total annual revenue less than R5 million.
  • Must have a valid tax clearance certificate or PIN.
  • Proof of compliance with the minimum wage requirements.
  • Must provide proof of UIF registration for employees employed by the business.
  • Be an existing tourism-specific establishment as outlined in the scope of application (suppliers and intermediaries are not eligible).
  • Must be in existence for at least one business financial year.
  • Proof that the relief is required as a result of the impact of COVID-19.
  • Must submit the latest statements of financial position, financial performance and cash flows.
  • Must submit six months bank statements.
  • Grading certificate or proof of application to be graded for accommodation establishments.
  • Application form and frequently asked questions about the fund can be accessed here:https://www.tourism.gov.za/CurrentProjects/Tourism_Relief_Fund_for_SMMEs/Pages/Tourism_Relief_Fund_for_SMMEs.aspx
  1. PROUDLY SA – SUPPLIER OF GOODS & MANUFACTURING
  • Proudly South Africa is soliciting applications from companies which are facing challenges due to the COVID-19 pandemic.
  • They are referring qualifying companies up to the DTI for assistance.
  • This offer is not restricted to Proudly SA member companies but is open to all local manufacturers of goods and services
  • For more information refer to this page: https://cdn.ymaws.com/www.thecdi.org.za/resource/resmgr/newsletter2020/proudlysa.pdf
  1. OPPENHEIMER FAMILY FUND:
  1. RUPERT FUNDING – BUSINESS PARTNERS
  • R1 billion fund.
  • Applications for loans through Business Partners Ltd.
  1. SA BANKS PAYMENT RELIEF MEASURES

ABSA

  • Relief for consumer, business banking and wealth customers.
  • Bespoke solutions for corporate and business banking clients
  • Additional administration fees waived

FNB

Nedbank

  • Delay your loan repayments through a 3-month payment holiday.
  • Monthly minimum repayment on credit cards has been reduced from 5% to 2.5% of the outstanding balance.
  • You can withdraw cash from any bank’s ATM without being charged the additional SASWITCH fee.
  • For clients wishing to access fixed-term or notice investments, the early release penalty will be waived.

Standard Bank

  • 3-month payment holiday for qualifying small business owners.
  • 3-month instalment relief for lower income earners.
  • You can withdraw cash from any bank’s ATM without being charged the additional SASWITCH fee.
  • Payment holiday for students.

11. UIF-COVID-19 TERS National Disaster Fund

Requirements for UIF-Covid-19 TERS claims:

  • All employers whose operations fully or partially closed as a direct result of COVID-19.
  • Employers and Employees who contribute monthly to UIF.
  • Employers that are registered with the department of labour prior to March 2020.
  • The Claim Process:
  • Employers can apply online at https://uifecc.labour.gov.za/covid19/, following the registration process.
  • Employee information can either be captured individually or imported as a bulk file (prescribed file layout should be used).
  • Required documents to be submitted
  • Latest Bank Statement (in PDF Format)
  • The TERS claim period is from 27 March 2020 to 30 April 2020
  • Employees using passport numbers can now also submit online as the system accepts the passport number (previously they could not).
  • Payments are based on the Income Replacement Sliding Scale (scale not yet published):
  • The percentages payable are anything between 38% – 60% of the salary up to the maximum of R17,712.00.
  • The minimum payment will be R3,500.00 and maximum payment is R6,730.00.
  • Employers paying reduced salaries can now also claim, but the total salary + TERS benefit may never exceed the usual gross salary of an employee
  • Example – Employee earns R25,000.00 per month the highest remuneration replacement rate will be R17,712.00 x 38% = R6,730.00
  • Please keep in mind that any portion of the salary already paid will be or could be deducted from the benefit before paid.
  • Additional Information to be noted:
  • Only bargaining councils need to open a new bank account.
  • Please note that the UIF Reference number is not the SARS number U000000000, it is an 8-digit numeric number registered at the Department of Labour e.g. 1234567/8
  • Freelancers and employees working on commission cannot submit a claim and are not covered by the UIF Act.
Please do not hesitate to contact us if you need any assistance on completing you TERS submission.